Foreclosures at Five Year Low, But Not in All States
RealtyTrac reports that foreclosure filings in 2013 were at the lowest annual rate since 2007. This is good news on the surface and for most areas. However, the same report tells us that overall foreclosure activity increased in 10 states last year. Scheduled foreclosure auctions in judicial process states were the highest in three years.
In RealtyTrac’s Year-End 2013 U.S. Foreclosures Market Report, we learn that an aggregate of 1,361,795 default notices, scheduled auctions, and bank repossessions were filed during the year. That’s down 26 percent from the 2012 level, and 53% below the peak in 2010. The last time filings were this low was in 2007 when they were at 1.3 million. More data points in the 2013 report include:
• 1.04 percent, or one in every 96 homes received a foreclosure notice.
• In 2012, that number was 1.39 percent, and in 2010 it was 2.23%.
• From 2006 through 2013, 10.9 million U.S. homes started the foreclosure process.
• During that period, 5.6 million have been repossessed by lenders.
• Ten states in which foreclosure activity increased:
o Maine by 123 percent
o Maryland by 117%
o Arkansas by 69%
o Vermont by 57 percent
o New Jersey by 44 percent
o New York by 34%
o Connecticut by 20 percent
o Delaware by 15%
o Washington & Pennsylvania by 13%
This doesn’t mean they’re moving any faster. The time to complete a foreclosure continued to increase, now averaging a record high of 564 days. States where foreclosures took the longest:
• New York – 1,029 days
• New Jersey – 999 days
• Florida – 944 days
Properties already in foreclosure are poised to exit the process in large numbers in 2014. Lenders will be happy, as there is still massive buying interest from small and large investors for these properties as future rentals. One estimate is another 10% increase in prices for foreclosures in 2014.
RealtyTrac reports that foreclosure filings in 2013 were at the lowest annual rate since 2007. This is good news on the surface and for most areas. However, the same report tells us that overall foreclosure activity increased in 10 states last year. Scheduled foreclosure auctions in judicial process states were the highest in three years.
In RealtyTrac’s Year-End 2013 U.S. Foreclosures Market Report, we learn that an aggregate of 1,361,795 default notices, scheduled auctions, and bank repossessions were filed during the year. That’s down 26 percent from the 2012 level, and 53% below the peak in 2010. The last time filings were this low was in 2007 when they were at 1.3 million. More data points in the 2013 report include:
• 1.04 percent, or one in every 96 homes received a foreclosure notice.
• In 2012, that number was 1.39 percent, and in 2010 it was 2.23%.
• From 2006 through 2013, 10.9 million U.S. homes started the foreclosure process.
• During that period, 5.6 million have been repossessed by lenders.
• Ten states in which foreclosure activity increased:
o Maine by 123 percent
o Maryland by 117%
o Arkansas by 69%
o Vermont by 57 percent
o New Jersey by 44 percent
o New York by 34%
o Connecticut by 20 percent
o Delaware by 15%
o Washington & Pennsylvania by 13%
This doesn’t mean they’re moving any faster. The time to complete a foreclosure continued to increase, now averaging a record high of 564 days. States where foreclosures took the longest:
• New York – 1,029 days
• New Jersey – 999 days
• Florida – 944 days
Properties already in foreclosure are poised to exit the process in large numbers in 2014. Lenders will be happy, as there is still massive buying interest from small and large investors for these properties as future rentals. One estimate is another 10% increase in prices for foreclosures in 2014.